2014 Con Quarter01 All

8/10/2019 2014 Con Quarter01 All

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INTERIM CONSOLIDATED FINANCIAL STATEMENTS OF

SAMSUNG ELECTRONICS CO., LTD. AND SUBSIDIARIES

INDEX TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Page

Report on Review of Interim Consolidated Financial Statements........................................ 1 - 2

Interim Consolidated Financial Statements

Interim Consolidated Statements of Financial Position............................................................... 3 - 5

Interim Consolidated Statements of Income................................................................................ 6

Interim Consolidated Statements of Comprehensive Income...................................................... 7

Interim Consolidated Statements of Changes in Equity.............................................................. 8 - 11

Interim Consolidated Statements of Cash Flows......................................................................... 12 - 13

Notes to Interim Consolidated Financial Statements............................................................. 14 - 51


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1

Report on Review of InterimConsolidatedFinancial Statements

To the Shareholders and Board of Directors of

Samsung Electronics Co., Ltd.

Reviewed Financial Statements

We have reviewed the accompanying interim consolidated financial statements of Samsung

Electronics Co., Ltd. and its subsidiaries (collectively referred to as the Company). These interim

consolidated financial statements consist of interim consolidated statements of financial position of

the Company as of March 31, 2014, and the related interim consolidated statements of income,

comprehensive income, changes in equity and cash flows for the three months ended March 31, 2014

and 2013, and a summary of significant accounting policies and other explanatory notes.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these interim consolidated

financial statements in accordance with the International Financial Reporting Standards as adopted by

the Republic of Korea (K-IFRS) 1034,Interim Financial Reporting, and for such internal control as

management determines is necessary to enable the preparation of interim consolidated financial

statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to issue a report on these interim consolidated financial statements based on our

reviews.

We conducted our reviews in accordance with the quarterly and semi-annual review standards

established by the Securities and Futures Commission of the Republic of Korea. A review of interim

financial information consists of making inquiries, primarily of persons responsible for financial and

accounting matters, and applying analytical and other review procedures. A review is substantiallyless in scope than an audit conducted in accordance with auditing standards generally accepted in the

Republic of Korea and consequently does not enable us to obtain assurance that we would become

aware of all significant matters that might be identified in an audit. Accordingly, we do not express an

audit opinion.


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2

Conclusion

Based on our reviews, nothing has come to our attention that causes us to believe the accompanying

interim consolidated financial statements are not presented fairly, in all material respects, in

accordance with the K-IFRS 1034, Interim Financial Reporting.

Other Matters

We have audited the consolidated statement of financial position of the Company as of December 31,

2013, and the related consolidated statements of income, comprehensive income, changes in equity

and cash flows for the year then ended, in accordance with auditing standards generally accepted in

the Republic of Korea. We expressed an unqualified opinion on those financial statements in our audit

report dated February 11, 2014. The consolidated statement of financial position as of December 31,

2013, presented herein for comparative purposes, is consistent, in all material respects, with the above

mentioned audited consolidated statement of financial position as of December 31, 2013.

Seoul, Korea

May 9, 2014

This report is effective as of May 9, 2014, the review report date. Certain subsequent events or circumstances,

which may occur between the review report date and the time of reading this report, could have a material

impact on the accompanying interim financial statements and notes thereto. Accordingly, the readers of the

review report should understand that there is a possibility that the above review report may have to be revised toreflect the impact of such subsequent events or circumstances, if any.


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3

Samsung Electronics Co., Ltd. and Subsidiaries

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(In millions of Korean won, in thousands of US dollars (Note 2.1))

March 31, December 31, March 31, December 31,

Notes 2014 2013 2014 2013

KRW KRW USD USD

Assets

Current assets

Cash and cash equivalents 3 18,150,284 16,284,780 16,981,929 15,236,508

Short-term financial instruments 3 41,261,844 36,722,702 38,605,767 34,358,815

Short-term available-for-sale

financial assets 3 2,066,226 1,488,527 1,933,220 1,392,709Trade and other receivables 3 27,492,283 27,875,934 25,722,570 26,081,525

Advances 1,901,717 1,928,188 1,779,301 1,804,068Prepaid expenses 3,520,559 2,472,950 3,293,936 2,313,763

Inventories 5 19,648,481 19,134,868 18,383,684 17,903,132

Other current assets 2,204,609 2,135,589 2,062,696 1,998,118

Assets held for sale - 2,716,733 - 2,541,853

Total current assets 116,246,003 110,760,271 108,763,103 103,630,491

Non-current assets

Long-term available-for-sale

financial assets 3, 4 8,139,616 6,238,380 7,615,659 5,836,808

Investments in associates and

joint ventures 6 6,537,343 6,422,292 6,116,526 6,008,881

Property, plant and equipment 7 76,519,036 75,496,388 71,593,409 70,636,591

Intangible assets 8 4,120,237 3,980,600 3,855,012 3,724,364Long-term prepaid expenses 5,472,058 3,465,783 5,119,815 3,242,686

Deferred income tax assets 4,542,095 4,621,780 4,249,715 4,324,270

Other non-current assets 3,716,208 3,089,524 3,476,988 2,890,649

Total assets 225,292,596 214,075,018 210,790,227 200,294,740

The accompanying notes are an integral part of these interim consolidated financial statements.


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Notes 2014 2013 2014 2013

KRW KRW USD USD

Liabilities

Current liabilities

Trade and other payables 3 21,889,330 17,633,705 20,480,286 16,498,601

Short-term borrowings 3, 9 7,282,569 6,438,517 6,813,781 6,024,062

Advances received 1,645,539 1,706,313 1,539,614 1,596,475

Withholdings 1,184,536 1,176,046 1,108,286 1,100,342

Accrued expenses 8,361,529 11,344,530 7,823,287 10,614,268

Income tax payable 5,116,692 3,386,018 4,787,324 3,168,056Current portion of long-term

borrowings and debentures 3, 9, 10 1,222,558 2,425,831 1,143,860 2,269,677

Provisions 12 7,153,996 6,736,476 6,693,484 6,302,841

Other current liabilities 501,924 467,973 469,615 437,849

Total current liabilities 54,358,673 51,315,409 50,859,537 48,012,171

Non-current liabilities

Long-term trade and other payables 3 2,739,218 1,053,756 2,562,891 985,924

Debentures 3, 10 1,326,287 1,311,068 1,240,912 1,226,673Long-term borrowings 3, 9 2,647,966 985,117 2,477,513 921,704

Net defined benefit liabilities 11 2,205,467 1,854,902 2,063,498 1,735,500

Deferred income tax liabilities 4,765,348 6,012,371 4,458,597 5,625,347

Provisions 12 526,794 460,924 492,884 431,254Other non-current liabilities 1,161,119 1,065,461 1,086,376 996,876

Total liabilities 69,730,872 64,059,008 65,242,208 59,935,449



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5





Notes 2014 2013 2014 2013

KRW KRW USD USD

Equity attributable to owners

of the parent

Preferred stock 14 119,467 119,467 111,777 111,777

Common stock 14 778,047 778,047 727,963 727,963

Share premium 4,403,893 4,403,893 4,120,409 4,120,409

Retained earnings 15 154,003,359 148,600,282 144,089,969 139,034,695

Other components of equity 16 (9,423,513) (9,459,073) (8,816,911) (8,850,181)

Non-controlling interests 5,680,471 5,573,394 5,314,812 5,214,628

Total equity 155,561,724 150,016,010 145,548,019 140,359,291

Total liabilities and equity 225,292,596 214,075,018 210,790,227 200,294,740



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6


INTERIM CONSOLIDATED STATEMENTS OF INCOME


For the three months ended March 31,

Notes 2014 2013 2014 2013

KRW KRW USD USD

Revenue 53,675,326 52,868,095 50,220,178 49,464,909

Cost of sales 17 32,049,515 31,379,355 29,986,447 29,359,426

Gross profit 21,625,811 21,488,740 20,233,731 20,105,483

Selling and administrative expenses 17, 18 13,137,012 12,709,282 12,291,366 11,891,170

Operating income 8,488,799 8,779,458 7,942,365 8,214,313

Other non-operating income 19 1,911,596 216,166 1,788,544 202,251

Other non-operating expenses 19 949,971 315,315 888,820 295,018

Share of profit ofassociates and joint ventures 6 30,136 177,936 28,196 166,482

Finance income 20 1,450,291 1,927,621 1,356,934 1,803,538

Finance costs 20 1,281,881 1,740,429 1,199,365 1,628,395

Profit before income tax 9,648,970 9,045,437 9,027,854 8,463,171

Income tax expense 21 2,074,529 1,890,496 1,940,989 1,768,803

Profit for the period 7,574,441 7,154,941 7,086,865 6,694,368

Profit attributable to owners of the

parent 7,484,680 6,976,918 7,002,882 6,527,805

Profit attributable to non-controlling

interests 89,761 178,023 83,983 166,563

Earnings per share for profit

attributable to owners of the parent(in Korean won, in US dollars) 22

- Basic 49,640 46,291 46.44 43.31

- Diluted 49,635 46,274 46.44 43.30



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INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME



Notes 2014 2013 2014 2013

KRW KRW USD USD


Other comprehensive income

Items not to be reclassified

subsequently to profit or loss:

Remeasurement of net defined

benefit liabilities, net of tax 16 (5,026) (8,598) (4,702) (8,045)

Items to be reclassified

subsequently to profit or loss:

Changes in value of available-for-

sale financial assets, net of tax 16 (49,858) 264,768 (46,648) 247,725

Share of other comprehensive

income (loss) of associates andjoint ventures, net of tax 16 (26,025) 15,373 (24,350) 14,384

Foreign currency translation, net

of tax 16 123,280 954,335 115,344 892,904

Other comprehensive income

for the period, net of tax 42,371 1,225,878 39,644 1,146,968

Total comprehensive income for

the period 7,616,812 8,380,819 7,126,509 7,841,336

Comprehensive incomeattributable to owners of theparent 7,508,468 8,166,237 7,025,139 7,640,567

Comprehensive income

attributable to non-controlling

interests 108,344 214,582 101,370 200,769



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INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In millions of Korean won)

2013 KRWPreferred

stockCommon

stockShare

premiumRetainedearnings

Othercomponents of

equity

Equity

attributableto owners of

the parent

Non-controlling

interests Total

Balance as of January 1, 2013 119,467 778,047 4,403,893 119,985,689 (8,193,044) 117,094,052 4,386,154 121,480,206

Profit for the period - - - 6,976,918 - 6,976,918 178,023 7,154,941Changes in value of available-for-sale

financial assets, net of tax - - - - 261,659 261,659 3,109 264,768

Share of other comprehensive income

of associates and joint ventures, net

of tax - - - - 15,278 15,278 95 15,373Foreign currency translation,

net of tax - - - - 920,695 920,695 33,640 954,335

Remeasurement of net defined benefit

liabilities, net of tax - - - - (8,313) (8,313) (285) (8,598)

Total comprehensive income - - - 6,976,918 1,189,319 8,166,237 214,582 8,380,819

Dividends - - - (1,131,255) - (1,131,255) (588) (1,131,843)Capital transaction under common

control - - - - (1,901) (1,901) 68,260 66,359

Changes in consolidated entities - - - - - - 894 894

Disposal of treasury stock - - - - 13,177 13,177 - 13,177

Stock option activities - - - - (3,751) (3,751) - (3,751)

Other - - - - 320 320 (537) ( 217)

Total transactions with owners - - - (1,131,255) 7,845 (1,123,410) 68,029 (1,055,381)

Balance as of March 31, 2013 119,467 778,047 4,403,893 125,831,352 (6,995,880) 124,136,879 4,668,765 128,805,644



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(In thousands of US dollars (Note 2.1))

2013 USDPreferred

stockCommon

stockShare


Othercomponents of

equity

Equity


the parent

Non-controlling

interests Total

Balance as of January 1, 2013 111,777 727,963 4,120,409 112,262,059 (7,665,647) 109,556,561 4,103,812 113,660,373

Profit for the period - - - 6,527,805 - 6,527,805 166,563 6,694,368Changes in value of available-for-sale

financial assets, net of tax - - - - 244,816 244,816 2,909 247,725


of associates and joint ventures, net

of tax - - - - 14,295 14,295 89 14,384Foreign currency translation,

net of tax - - - - 861,429 861,429 31,475 892,904

Remeasurement of net defined

benefit liabilities, net of tax - - - - (7,778) (7,778) (267) (8,045)

Total comprehensive income - - - 6,527,805 1,112,762 7,640,567 200,769 7,841,336

Dividends - - - (1,058,435) - (1,058,435) (550) (1,058,985)Capital transaction under common

control - - - - (1,779) (1,779) 63,866 62,087



Stock option activities - - - - (3,510) (3,510) - (3,510)

Other - - - - 299 299 (502) (203)

Total transactions with owners - - - (1,058,435) 7,339 (1,051,096) 63,650 (987,446)




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10




2014 KRW NotesPreferred

stockCommon

stockShare


Othercomponents

of equity

Equity


the parent

Non-controlling

interests Total

Balance as of January 1, 2014 119,467 778,047 4,403,893 148,600,282 (9,459,073) 144,442,616 5,573,394 150,016,010Profit for the period - - - 7,484,680 - 7,484,680 89,761 7,574,441

Changes in value of available-for-salefinancial assets, net of tax 16 - - - - (74,903) (74,903) 25,045 (49,858)


(loss) of associates and jointventures, net of tax 16 - - - - (26,041) (26,041) 16 (26,025)

Foreign currency translation,

net of tax 16 - - - - 131,815 131,815 (8,535) 123,280


liabilities, net of tax 16 - - - - (7,083) (7,083) 2,057 (5,026)

Total comprehensive income - - - 7,484,680 23,788 7,508,468 108,344 7,616,812

Dividends - - - (2,081,603) - (2,081,603) (458) (2,082,061)

Capital transaction under common

control - - - - (158) (158) (803) (961)



Stock option activities 16 - - - - (4,696) (4,696) - (4,696)Other - - - - 319 319 (19) 300

Total transactions with owners - - - (2,081,603) 11,772 (2,069,831) (1,267) (2,071,098)




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(In thousands of US dollars (Note 2.1))

2014 USD NotesPreferred

stockCommon

stockShare


Othercomponents

of equity

Equity


the parent

Non-controlling

interests Total

Balance as of January 1, 2014 111,777 727,963 4,120,409 139,034,695 (8,850,181) 135,144,663 5,214,628 140,359,291Profit for the period - - - 7,002,882 - 7,002,882 83,983 7,086,865

Changes in value of available-for-salefinancial assets, net of tax 16 - - - - (70,081) (70,081) 23,433 (46,648)


(loss) of associates and jointventures, net of tax

16 - - - - (24,365) (24,365) 15 (24,350)

Foreign currency translation,

net of tax 16 - - - - 123,330 123,330 (7,986) 115,344


liabilities, net of tax 16 - - - - (6,627) (6,627) 1,925 (4,702)

Total comprehensive income - - - 7,002,882 22,257 7,025,139 101,370 7,126,509

Dividends - - - (1,947,608) - (1,947,608) (429) (1,948,037)

Capital transaction under common

control - - - - (148) (148) (751) (899)



Stock option activities 16 - - - - (4,394) (4,394) - (4,394)Other - - - - 298 298 (18) 280

Total transactions with owners - - - (1,947,608) 11,013 (1,936,595) (1,186) (1,937,781)




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INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS



Notes 2014 2013 2014 2013

Cash flows from operating activities KRW KRW USD USD


Adjustments 23 5,617,215 5,885,266 5,255,628 5,506,424Changes in assets and liabilities arising from

operating activities 23 (735,419) 140,717 (688,079) 131,659

Cash flows from operating activities 12,456,237 13,180,924 11,654,414 12,332,451

Interest received 352,757 240,737 330,050 225,240

Interest paid (98,367) (117,512) (92,035) (109,948)Dividends received 1,295,241 135,928 1,211,865 127,178

Income tax paid (1,792,972) (620,728) (1,677,556) (580,771)

Net cash generated from operating activities 12,212,896 12,819,349 11,426,738 11,994,150

Cash flows from investing activities

Net increase in short-term financial instruments (4,558,705) (5,844,154) (4,265,255) (5,467,958)

Net decrease in short-term available-for-salefinancial assets (129,637) 9,214 (121,292) 8,621

Proceeds from disposal of long-term available-

for-sale financial assets 140,539 7,280 131,492 6,811

Acquisition of long-term available-for-salefinancial assets (2,456,883) (211,613) (2,298,730) (197,991)

Proceeds from disposal of associates andjoint ventures 2,013,457 - 1,883,848 -

Acquisition of associates and joint ventures (184,700) (21,034) (172,811) (19,680)

Proceeds from disposal of property and

equipment 86,009 39,758 80,472 37,199

Purchases of property and equipment (5,939,788) (3,401,640) (5,557,436) (3,182,672)

Proceeds from disposal of intangible assets 1,242 808 1,162 756Purchases of intangible assets (267,146) (265,118) (249,949) (248,052)

Cash outflows from business combination - (167,155) - (156,395)

Other (361,491) (664,374) (338,221) (621,607)

Net cash used in investing activities (11,657,103) (10,518,028) (10,906,720) (9,840,968)



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INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS



Notes 2014 2013 2014 2013

KRW KRW USD USD

Cash flows from financing activities

Proceeds from (repayment of) short-term

borrowings 827,941 (2,312,736) 774,645 (2,163,862)

Proceeds from disposal of treasury stock 13,727 10,280 12,843 9,618

Proceeds from long-term borrowings

and debentures 1,714,342 26,672 1,603,988 24,955

Repayment of long-term borrowingsand debentures (1,294,299) (403,634) (1,210,983) (377,652)

Payment of dividends (2,236) (3,243) (2,092) (3,034)

Net increase (decrease) in non-controlling

interests (776) 63,697 (726) 59,597

Net cash generated from (used in) financing

activities 1,258,699 (2,618,964) 1,177,675 (2,450,378)

Effect of exchange rate changes on cash and

cash equivalents 51,012 364,340 47,728 340,887

Net increase in cash and cash equivalents 1,865,504 46,697 1,745,421 43,691

Cash and cash equivalents

Beginning of the period 16,284,780 18,791,460 15,236,508 17,581,830

End of the period 18,150,284 18,838,157 16,981,929 17,625,521



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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

14

1. General Information

1.1 Company Overview

Samsung Electronics Co., Ltd. (SEC) was incorporated under the laws of the Republic of Korea in 1969 and

listed its shares on the Korea Stock Exchange in 1975.

SEC and its subsidiaries (collectively referred to as the Company) operate three business divisions: Consumer

Electronics (CE), Information technology & Mobile communications (IM), and Device Solution (DS). The

CE division includes digital TVs, monitors, printers, air conditioners and refrigerators and the IM division includes

mobile phones, communication system, and computers. The DS division includes products such as memory and

system LSI in the semiconductor business (Semiconductor), and LCD and OLED panels in the display business

(DP). The Company is domiciled in the Republic of Korea and the address of its registered office is Suwon, the

Republic of Korea.

These interim consolidated financial statements have been prepared in accordance with Korean International

Financial Reporting Standards (K-IFRS) 1110, Consolidated Financial Statements. SEC, as the controlling

Company, consolidates its 153 subsidiaries including Samsung Display and Samsung Electronics America. The

Company also applies the equity method of accounting to its 36 affiliates, including Samsung SDI.

1.2 Consolidated Subsidiaries

(A) The consolidated subsidiaries as of March 31, 2014 are as follows:

Area Subsidiaries Industry

Percentage

of

ownership1

Domestic

World Cyber Games Cyber game match hosting 99.9

High Pioneer Private Investment Trust #1 Technology business venture capital investments 100.0Samsung Display (SDC) Manufacture and sale of display panels 84.8

SU Materials Manufacture of LCD components 50.0

STECO Manufacture of semiconductor components 51.0

SEMES Manufacture of semiconductor/FPD 91.5

Samsung Electronics Service Repair services for electronic devices 99.3

Samsung Electronics Sales Sale of electronic devices 100.0

Samsung Electronics Logitech General logistics agency 100.0

Samsung Electronics Football Club Sponsoring of sports team and games 100.0

Samsung Medison Medical equipment 68.5

Ray Dental CT 68.1

Samsung Venture Capital Union #6 Technology business venture capital investments 99.0







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15


Percentage

of

ownership1

America

Samsung Electronics America (SEA) Sale of electronic devices 100.0

NexusDX (Nexus) Medical equipment 100.0

Samsung Receivables (SRC) Credit management 100.0

NeuroLogica Medical equipment 100.0

Samsung Semiconductor (SSI) Sale of semiconductor/LCD 100.0

Samsung Electronics Canada (SECA) Sale of electronic devices 100.0

Samsung Information Systems America

(SISA)

R&D 100.0

Grandis R&D 100.0

Samsung Mexicana (SAMEX) Manufacture of electronic devices 100.0

Samsung International (SII) Manufacture of CTV/monitors 100.0

Samsung Telecommunications America

(STA)

Sale of communication equipment 100.0

Samsung Austin Semiconductor (SAS) Manufacture of semiconductor 100.0

Samsung Electronics Mexico (SEM) Sale of electronic devices 99.9

SEMES America (SEMESA) Semiconductor equipment 100.0

Samsung Electronics Digital Appliance

Mexico (SEDAM)

Manufacture of electronic devices 99.9

Samsung Electronics Latinoamerica Miami

(SEMI)

Sale of electronic devices 100.0

Nvelo Software 100.0

Samsung Electronics Latinoamerica (SELA) Sale of electronic devices 100.0

Samsung Electronics Venezuela (SEVEN) Marketing and services 100.0

Samsung Electronica Colombia (SAMCOL) S ale of electronic devices 100.0

Samsung Electronics Panama (SEPA) Consulting 100.0

Samsung Electronica da Amazonia (SEDA) Manufacture and sale of electronic devices 100.0

Samsung Electronics Argentina (SEASA) Marketing and services 100.0

Samsung Electronics Chile (SECH) Sale of electronic devices 100.0

Samsung Electronics Peru (SEPR) Sale of electronic devices 100.0

RT SV CO-INVEST (RT-SV) Technology business venture capital investments 99.9

Europe

Samsung Electronics (UK) (SEUK) Sale of electronic devices 100.0

Samsung Electronics Holding (SEHG) Holding Company 100.0

Samsung Semiconductor Europe GmbH

(SSEG)

Sale of semiconductor/LCD 100.0

Samsung Electronics GmbH (SEG) Sale of electronic devices 100.0

Samsung Electronics Iberia (SESA) Sale of electronic devices 100.0

Samsung Electronics France (SEF) Sale of electronic devices 100.0

Samsung Electronics Hungarian (SEH) Manufacture and sale of electronic devices 100.0

Samsung Electronics Czech and Slovak

(SECZ)


Samsung Electronics Italia (SEI) Sale of electronic devices 100.0

Samsung Electronics Europe Logistics

(SELS)

Logistics 100.0

Samsung Electronics Benelux (SEBN) Sale of electronic devices 100.0

Samsung Display Slovakia (SDSK) Toll processing of LCD 100.0

Samsung Electronics Romania (SEROM) Sale of electronic devices 100.0

Samsung Electronics Overseas (SEO) Sale of electronic devices 100.0

Samsung Electronics Polska (SEPOL) Sale of electronic devices 100.0

Samsung Electronics Portuguesa (SEP) Sale of electronic devices 100.0

Samsung Electronics Nordic (SENA) Sale of electronic devices 100.0


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16


Percentage

of

ownership1

Europe

(Cont.)

Samsung Semiconductor Europe (SSEL) Sale of semiconductor/LCD 100.0

Samsung Electronics Austria (SEAG) Sale of electronic devices 100.0

Samsung Electronics Slovakia (SESK) Manufacture of CTV/monitors 100.0

Samsung Electronics Europe Holding

(SEEH)

Holding Company 100.0

Samsung Electronics Poland Manufacturing

(SEPM)

Manufacture of home appliances 100.0

Samsung Electronics Greece (SEGR) Sale of electronic devices 100.0

Samsung Nanoradio Design Center (SNDC) R&D 100.0

Nanoradio Hellas R&D 100.0

SonoAce Deutschland (SMDE) Medical equipment 100.0

Samsung Medison Europe (SMNL) Medical equipment 100.0

Nanogen Recognomics (Nanogen) Medical equipment 60.0

Samsung Electronics Rus (SER) Marketing 100.0

Samsung Electronics Rus Company (SERC) Sale of electronic devices 100.0

Samsung Electronics Ukraine (SEU) Marketing 100.0

Samsung Electronics Baltics (SEB) Sale of electronic devices 100.0

Samsung Electronics Ukraine Company

(SEUC)


Samsung R&D Institute Rus (SRR) R&D 100.0

Samsung Electronics Kazakhstan (SEK) Marketing 100.0

Samsung Electronics KZ and Central Asia

(SEKZ)


Samsung Electronics Rus Kaluga (SERK) Manufacture of CTV 100.0

Samsung Russia Service Centre (SRSC) Services 100.0

Samsung Electronics (London) Limited

(SEL)

Holding Company 100.0

Samsung Denmark Research Center

(SDRC)

R&D 100.0

Samsung France Research Center (SFRC) R&D 100.0

Samsung Cambridge Solution Centre

(SCSC)

R&D 100.0

Samsung Electronics Switzerland GmbH

(SESG)


Middle East

and Africa

Samsung Electronics West Africa (SEWA) Marketing 100.0

Samsung Electronics East Africa (SEEA) Marketing 100.0

Samsung Gulf Electronics (SGE) Sale of electronic devices 100.0

Samsung Electronics Egypt (SEEG) Manufacture and sale of electronic devices 100.0

Samsung Electronics Israel (SEIL) Marketing 100.0

Samsung Electronics Tunisia (SETN) Marketing 100.0

Samsung Electronics Pakistan (SEPAK) Marketing 100.0

Samsung Electronics South Africa (SSA) Sale of electronic devices 100.0

Samsung Electronics Turkey (SETK) Sale of electronic devices 100.0

Samsung Semiconductor Israel R&D Center

(SIRC)

R&D 100.0

Samsung Electronics Levant (SELV) Sale of electronic devices 100.0

Samsung Electronics Morocco (SEMRC) Sale of electronic devices 100.0


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Percentage

of

ownership1

China

Samsung Display Dongguan (SDDG) Manufacture of LCD 100.0

Samsung Display Tianjin (SDTJ) Manufacture of LCD 95.0

Samsung Electronics Hong Kong (SEHK) Sale of electronic devices 100.0

Suzhou Samsung Electronics (SSEC) Manufacture of home appliances 88.3

Samsung Suzhou Electronics Export

(SSEC-E)

Manufacture of home appliances 100.0

Samsung (China) Investment (SCIC) Sale of electronic devices 100.0

Samsung Mobile R&D Center China-

Guangzhou (SRC-Guangzhou)

R&D 100.0

Samsung Tianjin Mobile Development

Center (STMC)

R&D 100.0

Samsung Network R&D Center China-

Shenzhen (SRC-Shenzhen)

R&D 100.0

Samsung Electronics Suzhou Semiconductor

(SESS)

Toll processing of semiconductor 100.0

Samsung Electronics (Shandong) Digital

Printing (SSDP)

Manufacture of printers 100.0

Samsung Electronics Huizhou (SEHZ) Manufacture of electronic devices 99.9

Tianjin Samsung Electronics (TSEC) Manufacture of CTV/monitors 91.2

Samsung Electronics Taiwan (SET) Sale of electronic devices 100.0

Beijing Samsung Telecom R&D Center

(BST)

R&D 100.0

Tianjin Samsung Telecom Technology

(TSTC)

Manufacture of communication equipment 90.0

Shanghai Samsung Semiconductor (SSS) Sale of semiconductor/LCD 100.0

Samsung Electronics Suzhou Computer

(SESC)

Manufacture of electronic devices 100.0

Samsung Display Suzhou (SDSZ) Toll processing of LCD 100.0

Samsung Suzhou LCD (SSL) Manufacture of LCD 60.0

Shenzhen Samsung Electronics

Telecommunication (SSET)


Samsung Electronics Shanghai

Telecommunication (SSTC)

Sale of communication and network equipment 100.0

Samsung Semiconductor (China) R&D

(SSCR)

R&D 100.0

Samsung Electronics China R&D Center

(SCRC)

R&D 100.0

Samsung (China) Semiconductor (SCS) Manufacture of semiconductor 100.0

Samsung Electronics Hainan Fiberoptics

(SEHF)

Manufacture of optical fiber/cable 100.0

Samsung Electronics (Beijing) Service

(SBSC)

Services 100.0

Samsung Medison Shanghai Medical

Instrument (SMS1)

Medical equipment 100.0

Medison Medical Equipment (Shanghai)

(MMS)

Medical equipment 100.0

Tianjin Samsung LED (TSLED) Manufacture of LED 100.0

Tianjin Samsung Opto-Electronics (TSOE) Manufacture of cameras/camcorders 90.0

Samsung R&D Institute China-Xian

(SRC-Xian)

R&D 100.0

SEMES (Xian) Semiconductor equipment 100.0


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Percentage

of

ownership1

Rest of Asia

Samsung Japan (SJC) Sale of electronic devices 100.0

Samsung R&D Institute Japan (SRJ) R&D 100.0

Samsung Electronics Japan (SEJ) Sale of electronic devices 100.0

Samsung Electronics Display (M) (SDMA) Manufacture and sale of electronic devices 100.0

Samsung Electronics (M) (SEMA) Manufacture of home appliances 100.0

Samsung Vina Electronics (SAVINA) Manufacture and sale of electronic devices 100.0

Samsung Asia Private (SAPL) Sale of electronic devices 100.0

Samsung India Electronics (SIEL) Manufacture and sale of electronic devices 100.0

Samsung R&D Institute India-Bangalore

(SRI-B)

R&D 100.0

Samsung Electronics Australia (SEAU) Sale of electronic devices 100.0

Samsung Electronics Indonesia (SEIN) Manufacture and sale of electronic devices 100.0

Samsung Telecommunications Indonesia

(STIN)

Sale and services of communication systems 99.0

Thai Samsung Electronics (TSE) Manufacture and sale of electronic devices 91.8

Samsung Electronics Philippines (SEPCO) Sale of electronic devices 100.0

Samsung Malaysia Electronics (SME) Sale of electronic devices 100.0

Samsung R&D Institute Bangladesh

(SRBD)

R&D 100.0

Samsung Electronics Vietnam (SEV) Manufacture of electronic devices 100.0

Samsung Telecommunications Malaysia

(STM)

Services of communication systems 100.0

Samsung Electronics Vietnam

THAINGUYEN (SEVT)


Samsung Medison India (SMIN) Medical equipment 100.0

Samsung Electronics New Zealand Limited

(SENZ)


1 Ownership represents the Companys ownership of voting rights in each entity.


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(B) A summary of financial data of major consolidated subsidiaries is as follows:

(1) 2014

As of March 31, 2014

For the three months ended

March 31, 2014

(In millions of Korean won) Assets Liabilities Sales

Net Income

(Loss)

Samsung Display (SDC) 38,249,727 7,721,931 5,947,527 1,279,409Samsung Electronics America (SEA) 10,423,630 5,406,833 2,635,844 (33,028)

Samsung (China) Investment (SCIC) 9,942,772 8,313,024 6,154,186 20,116

Samsung Austin Semiconductor (SAS) 6,254,454 3,275,906 608,656 15,702Samsung Electronics Vietnam (SEV) 6,213,170 2,305,260 6,155,893 792,168Samsung Semiconductor (SSI) 6,204,120 2,790,329 4,376,811 16,344Samsung Electronics Europe Holding (SEEH) 5,711,748 3,949,468 - 55,971Samsung (China) Semiconductor (SCS) 5,655,211 3,237,029 - (24,989)Samsung Electronics Huizhou (SEHZ) 5,228,827 2,317,033 4,886,210 146,518Samsung Telecommunications America (STA) 4,357,735 3,653,511 5,025,660 45,843

Samsung Electronica da Amazonia (SEDA) 3,814,011 1,729,165 1,885,070 204,166Tianjin Samsung Telecom Technology (TSTC) 3,615,716 1,907,654 3,585,478 203,564Samsung Asia Private (SAPL) 3,077,680 674,787 378,033 1,061,523Shanghai Samsung Semiconductor (SSS) 3,038,166 2,703,256 3,052,001 33,620Samsung India Electronics (SIEL) 2,518,042 1,519,055 1,841,991 229,941Samsung Electronics Europe Logistics (SELS) 2,058,072 1,656,923 3,669,060 302,234Samsung Electronics Slovakia (SESK) 1,918,345 426,436 965,110 32,007Thai Samsung Electronics (TSE) 1,709,492 532,857 1,201,746 47,956Samsung Suzhou LCD (SSL) 1,645,383 645,458 63,667 (74,783)Samsung Electronics (UK) (SEUK) 1,497,497 898,474 1,308,909 (100,894)Samsung Electronics Taiwan (SET) 1,439,920 1,181,234 959,236 12,058Samsung Electronics Hungarian (SEH) 1,355,363 341,907 728,415 47,787Samsung Electronics GmbH (SEG) 1,309,487 1,396,514 1,862,116 (153,191)

Samsung Gulf Electronics (SGE) 1,283,786 1,298,710 2,379,688 10,601Samsung International (SII) 1,273,158 841,477 1,247,330 82,402


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(2) 2013

As of December 31, 2013


March 31, 2013

(In millions of Korean won) Assets Liabilities Sales

Net Income

(Loss)

Samsung Display (SDC) 35,754,894 6,682,229 6,999,303 605,530Samsung Electronics America (SEA) 12,248,560 7,262,519 2,715,594 50,136Samsung (China) Investment (SCIC) 8,406,438 6,780,610 5,859,240 292,902Samsung Semiconductor (SSI) 7,346,339 3,991,768 3,740,587 8,272Samsung Austin Semiconductor (SAS) 6,393,348 3,467,968 659,359 (353)Samsung Electronics Europe Holding (SEEH) 5,780,302 4,025,760 - 2,137Samsung Electronics Vietnam (SEV) 5,625,759 1,493,868 5,769,437 639,348Samsung Telecommunications America (STA) 4,735,432 4,085,299 3,799,052 (35,980)Samsung Electronics Huizhou (SEHZ) 4,599,200 1,802,686 4,500,864 323,007Samsung (China) Semiconductor (SCS) 3,752,682 1,284,560 - (4,228)Samsung Electronica da Amazonia (SEDA) 3,429,136 1,658,072 1,542,893 103,948Tianjin Samsung Telecom Technology (TSTC) 2,939,027 1,415,277 3,249,240 259,134

Samsung Asia Private (SAPL) 2,425,585 1,099,521 384,199 761,478Samsung India Electronics (SIEL) 1,924,832 1,195,824 1,574,164 93,942

Samsung Electronics Europe Logistics (SELS) 1,903,892 1,806,486 3,535,098 179,553Samsung Electronics Slovakia (SESK) 1,764,078 317,224 1,055,477 37,810Samsung Electronics Mexico (SEM) 1,554,638 1,311,133 648,211 (3,944)Thai Samsung Electronics (TSE) 1,476,296 373,181 1,276,446 61,559Samsung Suzhou LCD (SSL) 1,463,589 379,118 - (2,953)Samsung Electronics Rus Company (SERC) 1,410,054 1,107,915 1,616,826 12,471Samsung Electronics (UK) (SEUK) 1,393,507 705,504 1,519,301 12,679Samsung Electronics Taiwan (SET) 1,390,404 1,141,842 1,117,421 20,895Shanghai Samsung Semiconductor (SSS) 1,310,109 1,005,056 3,521,280 17,314Samsung Electronics Benelux (SEBN) 1,290,124 322,622 700,573 1,428Samsung Electronics Hungarian (SEH) 1,249,691 253,536 817,539 37,870

(C) Changes in scope of consolidation

(1) Subsidiary newly included in the consolidation for the three months ended March 31, 2014:

Area Subsidiary Description

America RT SV CO-INVEST (RT-SV) Acquisition of shares

(2) Subsidiary excluded from the consolidation for the three months ended March 31, 2014:

Area Subsidiary Description

Asia Medison Medical Systems (India) (MI) Liquidation


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2. Summary of Significant Accounting Policies

2.1 Convenience Translation into United States Dollar Amounts

The Company operates primarily in Korean won and its official accounting records are maintained in Korean won.The US dollar amounts provided in the financial statements represent supplementary information solely for the

convenience of the reader. All Korean won amounts are expressed in US dollars at the rate of1,068.80 to US

$1, the exchange rate in effect on March 31, 2014. Such presentation is not in accordance with generally accepted

accounting principles, and should not be construed as a representation that the Korean won amounts shown could

be readily converted, realized or settled in US dollars at this or at any other rate.

2.2 Basis of Presentation

The interim consolidated financial statements for the three months ended March 31, 2014, have been prepared in

accordance with K-IFRS 1034, Interim Financial Reporting. These interim consolidated financial statements have

been prepared in accordance with the K-IFRS standards and interpretations effective or early adopted at the

reporting date.

The Company applied the following amended and enacted standards for the annual period beginning on January 1,

2014:

K-IFRS 1032, Financial Instruments: Presentation

The standard provides that the right to offset must not be contingent on a future event and must be legally

enforceable in all of circumstances; and if an entity can settle amounts in a manner such that outcome is, in effect,

equivalent to net settlement, the entity will meet the net settlement criterion. The adoption of this standard did not

have a material impact on the consolidated financial statements.

K- IFRIC Interpretations 2121, Levies

The interpretation requires that the liability to pay a levy is recognized when the activity that triggers the payment

of the levy occurs, as identified by the legislation (the obligating event). The adoption of this interpretation did not

have a material impact on the consolidated financial statements.

2.3 Accounting Policies

Significant accounting policies and estimates adopted in the preparation of the interim consolidated financial

statements are consistent with those adopted in the preparation of the annual consolidated financial statements for

the year ended December 31, 2013, except changes in accounting policies applied in the financial year beginning

on January 1, 2014, and as described below.

Income tax expense for the interim period is recognized based on managements best estimate of the weighted

average annual income tax rate expected for the full financial year. The estimated average annual tax rate is

applied to the pre-tax income.


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2.4 Critical Accounting Estimates and Assumptions

In preparing the interim consolidated financial statements, the management of the Company makes estimates and

assumptions on matters which affect the application of policies and reported amounts of assets, liabilities, income

and expenses. Estimates and assumptions are continually evaluated and are based on historical experience and

other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The resulting accounting estimates, by definition, seldom equal the related actual results.

Critical accounting estimates and assumptions made in the preparation of interim consolidated financial statements

are consistent with those made in the preparation of the annual consolidated financial statements for the year ended

December 31, 2013, except for the estimation methodologies applied in deriving corporate income tax.

3. Financial Instruments by Category

Categorizations of financial assets and liabilities as of March 31, 2014 and December 31, 2013, are as follows:

(1) As of March 31, 2014


Assets at fair

value through

profit and loss

Loans and

receivables

Available-for-sale

financial assets Total

Assets

Cash and cash equivalents - 18,150,284 - 18,150,284

Short-term financial instruments - 41,261,844 - 41,261,844

Short-term available-for-sale financial assets - - 2,066,226 2,066,226

Trade and other receivables - 25,235,924 - 25,235,924

Long-term available-for-sale financial assets - - 8,139,616 8,139,616

Other 59,206 6,331,258 - 6,390,464

Total 59,206 90,979,310 10,205,842 101,244,358


Liabilities at fair

value through

profit and loss

Financial

liabilities

measured at

amortized cost

Other

financial

liabilities Total

Liabilities

Trade and other payables - 20,381,414 - 20,381,414

Short-term borrowings - 2,604,866 4,677,703 7,282,569

Debentures - 1,326,287 - 1,326,287

Long-term borrowings - 2,647,966 - 2,647,966

Long-term other payables - 2,708,783 - 2,708,783

Other 274,645 9,103,365 - 9,378,010

Total 274,645 38,772,681 4,677,703 43,725,029


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(2) As of December 31, 2013


Assets at fair

value through

profit or loss

Loans and

receivables

Available-for-sale

financial assets Total

Assets

Cash and cash equivalents - 16,284,780 - 16,284,780

Short-term financial instruments - 36,722,702 - 36,722,702

Short-term available-for-sale financial assets - - 1,488,527 1,488,527

Trade and other receivables - 24,988,532 - 24,988,532

Long-term available-for-sale financial assets - - 6,238,380 6,238,380

Other 40,552 5,432,404 - 5,472,956

Total 40,552 83,428,418 7,726,907 91,195,877


Liabilities at fair

value through

profit and loss

Financial

liabilities

measured at

amortized cost

Other

financial

liabilities Total

Liabilities

Trade and other payables - 16,314,720 - 16,314,720

Short-term borrowings - 3,181,582 3,256,935 6,438,517

Debentures - 1,311,068 - 1,311,068

Long-term borrowings - 985,117 - 985,117

Long-term other payables - 1,023,714 - 1,023,714

Other 244,172 13,044,171 - 13,288,343

Total 244,172 35,860,372 3,256,935 39,361,479

4. Long-Term Available-for-Sale Financial Assets

(A) Details of long-term available-for-sale financial assets as of March 31, 2014 and December 31, 2013, are as

follows:

(In millions of Korean won) March 31, 2014 December 31, 2013

Equity securities - Listed 4,089,318 4,399,314

Equity securities - Non-listed1 3,430,683 782,297

Debt securities2 619,615 1,056,769

Total 8,139,616 6,238,380

1 During the three months ended March 31, 2014, the Company acquired 2,300 shares of convertible preferred stock of Corning

Incorporated for2,434,320 million.2 The maximum exposure to credit risk of available-for-sale debt securities is the carrying value at the reporting date.


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(B) Details of listed equity securities as of March 31, 2014 and December 31, 2013, are as follows:

(In millions of Korean won, number of shares and percentage)

March 31, 2014

December 31,

2013

Number of

Shares Owned

Percentage of

Ownership (%) Acquisition Cost

Book Value

(Market Value)

Book Value

(Market Value)

Samsung Heavy Industries 40,675,641 17.6 258,299 1,295,519 1,547,708

Samsung Fine Chemicals 2,164,970 8.4 45,678 105,867 96,449

Hotel Shilla 2,004,717 5.1 13,957 172,606 133,314

Cheil Worldwide 2,998,725 2.6 2,920 71,819 82,465

iMarket Korea 647,320 1.8 324 21,264 16,668

SFA 1,822,000 10.2 38,262 80,077 74,884

Wonik IPS 7,220,216 9.0 63,249 64,404 61,949

ASML 12,595,575 2.8 726,024 1,244,280 1,248,019

CSR1 - - - - 110,135

Rambus 4,788,125 4.3 92,682 55,014 47,851

Seagate Technology 12,539,490 3.8 218,544 752,668 743,161

Wacom 8,398,400 5.0 62,013 63,246 62,268

Sharp 35,804,000 3.0 122,535 116,779 120,143

Other - - 47,014 45,775 54,300

Total 1,691,501 4,089,318 4,399,314

1 During the three months ended March 31, 2014, the Company sold all of its investment in CSR for EUR 79 million.

Acquisition cost includes impairment loss on available-for-sale financial assets recognized due to the decline inrealizable value below acquisition cost.

The difference between the acquisition cost and the current fair value, after income tax effects, is recorded withinother components of equity (unrealized gains or losses on available-for-sale financial assets).

5. Inventories

Inventories as of March 31, 2014 and December 31, 2013, are as follows:

(In millions of

Korean won)

March 31, 2014 December 31, 2013

Gross

Amount

Valuation

Allowance

Book

Value

Gross

Amount

Valuation

Allowance

Book

Value

Finished goods 6,623,615 (163,176) 6,460,439 7,597,391 (168,041) 7,429,350Work in process 4,892,687 (207,529) 4,685,158 4,352,080 (281,814) 4,070,266

Raw materials and

supplies 7,643,240 (199,777) 7,443,463 6,960,985 (151,873) 6,809,112

Materials in transit 1,059,421 - 1,059,421 826,140 - 826,140

Total 20,218,963 (570,482) 19,648,481 19,736,596 (601,728) 19,134,868


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6. Investments in Associates and Joint Ventures

(A) Changes in investments in associates and joint ventures for the three months ended March 31, 2014 and

2013, are as follows:

(In millions of Korean won) 2014 2013

Balance as of January 1 6,422,292 8,785,489

Acquisition 184,700 21,034

Share of profit 30,136 177,936

Other1 (99,785) (183,662)

Balance as of March 31 6,537,343 8,800,797

1 Other consists of dividends, business combinations, and effects of changes in foreign exchange rates.

(B) Major investments in associates and joint ventures as of March 31, 2014, are as follows:

(1) Investments in associates

Investee Nature of Relationship with Associate

Percentage of

Ownership1 (%)

Principal

Business

Location

Samsung Card Business alliance 37.5 Korea

Samsung Electro-Mechanics

Manufacture and supply electronic components

including passive component, circuit board, and

module

23.7 Korea

Samsung SDI2 Manufacture and supply electronic devices including

PDP and secondary (rechargeable) batteries 20.4 Korea

Samsung SDS Provide IT services including computerprogramming, system integration and management

22.6 Korea

Samsung Techwin Manufacture and supply engine and precision

machines 25.5 Korea

1 Ownership represents the Companys ownership of common stock in each entity.2 Samsung SDI Co., Ltd. will merge with Cheil Industries, Inc. (merger date: July 1, 2014) based on a resolution approved by the

Board of Directors at a meeting on March 31, 2014.

(2) Investments in joint ventures

Investee Nature of Relationship with Joint Venture

Percentage of

Ownership

1

(%)

Principal

Business

LocationSamsung Corning Advanced Glass Manufacture and supply other industrial glass devices 50.0 Korea

1 Ownership represents the Companys ownership of common stock in each entity.


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(C) Details of investments in associates and joint ventures as of March 31, 2014 and December 31, 2013, are as

follows:

(1) Investments in associates

(In millions of Korean won) March 31, 2014

Investee Acquisition cost Net asset value1 Book value

Samsung Card 1,538,540 2,307,465 2,324,464

Samsung Electro-Mechanics 359,237 933,047 934,497

Samsung SDI 423,722 1,462,518 1,185,120

Samsung SDS 147,963 870,007 892,026

Samsung Techwin 174,531 438,663 402,863

Other 670,029 449,235 572,948

Total 3,314,022 6,460,935 6,311,918

(In millions of Korean won) December 31, 2013

Investee Acquisition cost Net asset value1 Book value

Samsung Card 1,538,540 2,322,897 2,340,009

Samsung Electro-Mechanics 359,237 951,693 954,496

Samsung SDI 423,722 1,451,770 1,175,204

Samsung SDS 147,963 858,671 879,956

Samsung Techwin 174,531 433,624 402,745

Other 582,646 375,959 548,553

Total 3,226,639 6,394,614 6,300,963

1 Companys portion of net asset value of associates is based on the Companys ownership percentage.

(2) Investments in joint ventures

(In millions of Korean won) March 31, 2014

Investee Acquisition cost Net asset value1

Book value

Samsung Corning Advanced Glass 215,000 206,498 206,398

Other 422,995 15,487 19,027

Total 637,995 221,985 225,425

(In millions of Korean won) December 31, 2013

Investee Acquisition cost Net asset value1

Book value

Samsung Corning Advanced Glass 115,000 111,961 111,961

Other 422,995 (16,357) 9,368

Total 537,995 95,604 121,329

1 Companys portion of net asset value of joint ventures is based on the Companys ownership percentage.


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(D) Details of changes in equity-method investments including associates and joint ventures are as follows:

(1) For the three months ended March 31, 2014


Balance as of

January 1

Gain/loss on

valuation

Other

comprehensive

income/loss Other1Balance as of

March 31

Samsung Card 2,340,009 25,326 (10,496) (30,375) 2,324,464

Samsung Electro-Mechanics 954,496 (1,012) (5,717) (13,270) 934,497

Samsung SDI 1,175,204 7,528 16,313 (13,925) 1,185,120

Samsung SDS 879,956 16,951 (513) (4,368) 892,026

Samsung Techwin 402,745 965 5,915 (6,762) 402,863

Samsung Corning Advanced Glass 111,961 (5,446) (11) 99,894 206,398

Other 557,921 (14,176) (2,744) 50,974 591,975

Total 6,422,292 30,136 2,747 82,168 6,537,343

1 Other consists of acquisitions, disposals, dividends, and effects of changes in currency exchange rates.

(2) For the three months ended March 31, 2013


Balance as of

January 1

Gain/loss on

valuation

Other

comprehensive

income/loss Other1Balance as of

March 31

Samsung Card 2,238,073 24,903 (677) (30,375) 2,231,924

Samsung Electro-Mechanics 890,460 20,902 6,656 (17,882) 900,136

Samsung SDI 1,174,183 15,116 1,383 (14,430) 1,176,252

Samsung SDS 701,808 19,008 3,142 (3,750) 720,208

Samsung Techwin 360,739 8,235 1,103 (6,698) 363,379

Samsung Corning Precision Materials2 2,794,617 121,163 320 (135,924) 2,780,176

Samsung Corning Advanced Glass 114,274 (358) - - 113,916

Other 511,335 (31,033) 3,446 31,058 514,806

Total 8,785,489 177,936 15,373 (178,001) 8,800,797

1 Other consists of acquisitions, disposals, dividends, and effects of changes in currency exchange rates.2 During the year ended December 31, 2013, the Company signed a framework agreement for comprehensive business cooperation

with Corning Incorporated. The Company classified its share in Samsung Corning Precision Materials Co., Ltd (ownership

percentage: 42.54%) as assets held for sale as of December 31, 2013, and disposed of such shares for2,013,457 million during the

three months ended March 31, 2014. Pursuant to the agreement, the Company received additional dividends after the resolution ofthe Samsung Corning Precision materials Co., Ltd shareholders meeting.


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(E) Summary of condensed financial information of major associates and joint ventures

(1) A summary of condensed financial information of major associates and dividends received from

associates as of March 31, 2014 and December 31, 2013, and for the three months ended March 31,

2014 and 2013, is as follows:

(In millions of Korean won) As of and for the three months ended March 31, 2014

Investee

Samsung

Card1

Samsung

Electro-

Mechanics Samsung SDI Samsung SDS

Samsung

Techwin

1. Condensed financial information

Current assets 16,681,805

2,691,631 1,955,254 3,039,170 1,696,612

Non-current assets 4,523,571 8,679,529 2,335,112 1,914,668

Current liabilities10,520,349

1,864,128 1,506,463 1,214,477 1,323,395

Non-current liabilities 1,174,699 1,541,043 222,305 563,165

Non-controlling interests - 84,093 154,556 84,502 1,775

Revenue 731,583 1,728,771 1,135,684 1,866,857 661,745

2. Dividends from associates

Dividends 30,375 13,270 13,924 4,368 6,763

1 Samsung Card does not present current and non-current assets, and current and non-current liabilities, as separate classifications

in its statement of financial position.

(In millions of Korean won) For the three months ended March 31, 2014

Investee

Samsung

Card

Samsung

Electro-

Mechanics

Samsung

SDI

Samsung

SDS

Samsung

Techwin Other

Income (loss) from continuingoperations1 67,602 1,661 39,133 71,871 10,164 (33,017)

Other comprehensive income (loss)1 (28,026) (25,486) 94,252 (2,270) 36,089 4,817

Total comprehensive income (loss)1 39,576 (23,825) 133,385 69,601 46,253 (28,200)

1 Income (loss) attributable to owners of the parent.


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(In millions of Korean won) As of December 31, 2013, and for the three months ended March 31, 2013

Investee

Samsung

Card1

Samsung

Electro-

Mechanics Samsung SDI Samsung SDS

Samsung

Techwin


Current assets 16,560,926

2,650,765 2,063,192 2,928,998 1,561,706

Non-current assets 4,534,578 8,492,479 2,371,102 1,872,518

Current liabilities10,358,265

1,787,432 1,526,957 1,219,484 1,169,253

Non-current liabilities 1,139,884 1,486,297 197,237 560,191

Non-controlling interests - 83,966 164,323 80,644 1,628

Revenue2 746,190 2,043,716 1,208,192 1,498,391 655,368

2. Dividends from associates

Dividends 30,375 17,693 13,924 3,914 6,763

1 Samsung Card does not present current and non-current assets, and current and non-current liabilities, as separate classifications

in its statement of financial position.2 Amounts relate to the three months ended March 31, 2013.

(In millions of Korean won) For the three months ended March 31, 2013

Investee

Samsung

Card

Samsung

Electro-

Mechanics

Samsung

SDI

Samsung

SDS

Samsung

Techwin Other

Income (loss) from continuing

operations1, 2 66,473 95,047 77,653 84,348 31,434 (19,213)

Other comprehensive income1, 2 2,697 27,945 598 14,500 4,406 11,586

Total comprehensive income (loss)1, 2 69,170 122,992 78,251 98,848 35,840 (7,627)

1 Income (loss) attributable to owners of the parent.2 Amounts relate to the three months ended March 31, 2013.


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(2) A summary of the condensed financial information of major joint ventures and dividends received from

joint ventures as of March 31, 2014 and December 31, 2013, and for the three months ended March 31,

2014 and 2013, is as follows:


As of and for the three months ended

March 31, 2014

As of December 31, 2013, and for the

three months ended March 31, 2013

Samsung Corning Advanced Glass Samsung Corning Advanced Glass


Current assets 248,884 171,353

- Cash and cash equivalents 37,742 64,113

Non-current assets 228,628 95,310

Current liabilities 62,441 42,674

- Current financial liabilities1 56,020 40,575

Non-current l iabilities 2,075 67

Non-controlling interests - -

Revenue2 50,227 15,890

Depreciation and amortization2 87 38

Interest income2 103 1,255

Income tax expense2 (2,212) (89)

2. Dividends from joint ventures

Dividends - -

1 Accounts payable, other payables, and provisions are excluded.2 Amounts relate to the three months ended March 31, 2014 and 2013.



March 31, 2014


March 31, 2013

Investee

Samsung

Corning

Advanced Glass

Others

Samsung

Corning

Advanced Glass

Others

Loss from continuing Operations1 (10,904) (49,980) (717) (46,289)

Other comprehensive income (loss)1 (23) 11,547 - (424)

Total comprehensive loss1 (10,927) (38,433) (717) (46,713)

1 Income (loss) attributable to owners of the parent.

(F) Fair value of marketable investments in associates as of March 31, 2014 and December 31, 2013, is as

follows:

(In millions of Korean won and

number of shares)


Number of shares held Market value Market value

Samsung SDI 9,282,753 1,494,523 1,503,806

Samsung Electro-Mechanics 17,693,084 1,226,131 1,291,595

Samsung Card 43,393,170 1,503,573 1,622,905Samsung Techwin 13,526,935 783,210 735,865


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7. Property, Plant and Equipment

(A) Changes in property, plant and equipment for the three months ended March 31, 2014 and 2013, are as

follows:



Acquisition and capital expenditures 5,373,794 3,882,000

Business combinations - 1,052

Depreciation (4,004,084) (3,775,468)

Sales/disposals/impairment (249,785) (141,024)

Other1 (97,277) 314,356


1Other includes effects of changes in foreign currency exchange rates.

(B) Details of depreciation of property, plant and equipment by line item for the three months ended March 31,

2014 and 2013, are as follows:


Cost of sales 3,619,728 3,438,636

Selling and administrative expenses 384,356 336,832

Total 4,004,084 3,775,468

8. Intangible Assets

(A) Changes in intangible assets for the three months endedMarch31, 2014 and 2013, are as follows:



Internally generated (development costs) 186,694 89,101

External acquisitions 80,452 176,017

Business combinations - 166,553

Amortization (252,337) (231,598)

Sales/disposals/impairment (3,802) (5,086)

Other1 128,630 152,259


1Other includes effects of changes in foreign currency exchange rates.


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(B) Details of amortization of intangible assets by line item for the three months ended March 31, 2014 and 2013,

are as follows:


Cost of sales 107,648 96,959


Total 252,337 231,598

9. Borrowings

Details of the carrying amounts of borrowings as of March 31, 2014 and December 31, 2013, are as follows:


Financial

Institutions

Annual Interest Rates (%)

as of March 31, 2014

March 31,

2014

December 31,

2013

Short-term borrowings

Collateralized borrowings1 Woori Bank and others 0.6 ~ 10.5 4,677,703 3,256,935

Non-collateralized borrowings Citibank and others 0.4 ~ 18.1 2,604,866 3,181,582

Total 7,282,569 6,438,517

Current portion of

long-term borrowings

Bank borrowings SMBC and others 1.3 ~ 7.4 699,386 1,900,937

Financial lease liabilities2 CSSD and others 1.1 ~ 15.7 18,018 19,811

Total 717,404 1,920,748

Long-term borrowings

Bank borrowings SMBC and others 0.5 ~ 1.1 2,561,016 902,715

Financial lease liabilities2 CSSD and others 1.1 ~ 15.7 86,950 82,402

Total 2,647,966 985,117

1 Collateralized borrowings are secured by trade receivables.2 Leased property, plant and equipment were pledged as collateral.

10. Debentures

Details of the carrying amount of debentures as of March 31, 2014 and December 31, 2013, are as follows:


Korean won denominated debentures (A) 198,837 198,566

Foreign currency denominated debentures (B) 1,127,450 1,112,502

Total 1,326,287 1,311,068


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(A) Details of Korean won denominated debentures as of March 31, 2014 and December 31, 2013, are as

follows:

(In millions of Korean won) Issue Date Due Date


as of March 31, 2014 March 31, 2014 December 31, 2013

Unsecured debentures 2011.11.17 2014.11.17 4.1 500,000 500,000

Unsecured debentures 2011.11.17 2016.11.17 4.2 200,000 200,000

Less: Current portion (500,000) (500,000)

Less: Discounts (1,163) (1,434)

Total 198,837 198,566

All the above debentures have been issued by Samsung Display and will be repaid upon maturity.

(B) Details of foreign currency denominated debentures as of March 31, 2014 and December 31, 2013, are

as follows:

(In millions of Korean Won) Issue Date Due Date


as of March 31, 2014 March 31, 2014 December 31, 2013

US dollar denominated

straight bonds11997.10.02 2027.10.01 7.7 74,816

(US$70 million)

73,871

(US$70 million)

US dollar denominated

unsecured bonds2 2012.04.10 2017.04.10 1.8

1,068,800

(US$1,000 million)

1,055,300

(US$ 1,000 million)

Less: Current portion (5,344) (5,277)

Less: Discounts (10,822) (11,392)

Total 1,127,450 1,112,502

1 US dollar denominated straight bonds are repaid annually for twenty years after a ten-year grace period from the date of issuance.

Interest is paid semi-annually.2 US dollar denominated unsecured bonds are issued by Samsung Electronics America, a subsidiary of the Company, and are

repaid in full upon maturity. Interest is paid semi-annually.

11. Net Defined Benefit Liabilities

(A) Details of net defined benefit liabilities recognized on the consolidated statements of financial position as of

March 31, 2014 and December 31, 2013, are as follows:


Present value of funded defined benefit obligations 6,018,914 5,672,147

Present value of unfunded defined benefit obligations 56,168 55,931

Subtotal 6,075,082 5,728,078

Fair value of plan assets (3,869,615) (3,873,176)

Total 2,205,467 1,854,902


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(B) The amounts recognized in the statements of income for the three months ended March 31, 2014 and 2013,

are as follows:


Current service cost 238,270 208,658

Interest cost 25,386 24,443

Past service cost 128,747 -

Gains and losses arising from settlements (2,259) 631

Total 390,144 233,732

(C) The pension expenses related to defined benefit plans recognized on the consolidated statements of income

for the three months ended March 31, 2014 and 2013, are as follows:


Cost of sales 165,180 92,116


Total 390,144 233,732

12. Provisions

Changes in the provisions during the three months ended March 31, 2014, are as follows:

(In millions of Korean won) Warranty (A)

Royalty

expenses (B)

Long-term

incentives (C) Bonus (D) Other Total

Balance as of January 1, 2014 1,945,992 4,272,670 921,848 - 56,890 7,197,400

Charged (credited) to the

statement of income 617,771 113,063 65,869 930,023 (5) 1,726,721

Payment (600,101) (754,273) - - - (1,354,374)

Other1 17,273 93,285 - - 485 111,043

Balance as of March 31, 2014 1,980,935 3,724,745 987,717 930,023 57,370 7,680,790

1 Other includes effects of changes in foreign currency exchange rates.

(A) The Company accrues warranty reserves for estimated costs of future service, repairs and recalls, based on

historical experience and terms of warranty programs.

(B) The Company makes provisions for the estimated royalty expenses under negotiation with counterparties.

The timing of payment depends on the settlement of the negotiation.

(C) The Company has a long-term incentive plan for its executives based on a three-year management

performance criteria and has made a provision for the estimated incentive cost for the accrued period.

(D) The Company provides bonuses for its executives and employees, which are determined based on current-

period performance. The estimated bonus cost for the accrued period has been recognized as a provision.


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13. Commitments and Contingencies

(A) Guarantees

Details of guarantees of debt provided by the Company as of March 31, 2014 and December 31, 2013, are as follows:


Guarantees of debt for housing rental1 124,032 151,985

1 Represent the maximum amount of debt guarantee, which was provided for employees who took debt from financial institutions

in order to finance employee housing rental.

In addition to the guarantees described above, the Company provides guarantees for borrowings by Intellectual

Keystone Technology (IKT), the Companys associate, to Citibank in the amount of32,064 million (USD 30

million).

As of March 31, 2014, the Companys investments in Pusan Newport are pledged as collateral against the investee's

debt.

(B) Litigation

(1) Based on the agreement entered on August 24, 1999 with respect to Samsung Motor Inc.s (SMI)

bankruptcy proceedings, SMIs creditors (the Creditors) filed a civil action against Mr. Kun Hee Lee,

chairman of the Company, and 28 Samsung Group affiliates including the Company under joint and

several liability for failing to comply with such agreement. Under the suit, the Creditors have sought

2,450 billion for loss of principal on loans extended to SMI, a separate amount for breach of the

agreement, and an amount for default interest. During the course of Samsung Life Insurances (SLI)Initial Public Offering (IPO), its shares owned by the Creditors were disposed of, and the part of

proceeds exceeding the par value of70,000 was deposited into an escrow account (877.6 billion).

Most of the claims with regards to the lawsuit have been withdrawn. On January 11, 2011, the Seoul

High Court ordered Samsung Group affiliates to pay to the Creditors 600 billion and penalties due to

delay. In accordance with the Seoul High Court order, 620.4 billion (which includes penalties and

interest owed) was paid to the Creditors from the funds held in escrow during January 2011. Samsung

Group affiliates and the Creditors appealed the Seoul High Courts ruling to the Korean Supreme Court,

and the appeal is currently in progress.

(2) The litigation with Apple Inc. in multiple regions including the U.S.A. is ongoing as of the reporting

date. Regarding the ongoing lawsuit in the U.S.A, on August 24, 2012, the jury determined that theCompany partially infringed Apples design and utility patent and should pay damages to Apple. On

March 1, 2013, however, the Judge ordered a new trial for a certain portion of the damages, ruling that it

was originally miscalculated. On March 6, 2014, the Judge denied Apple's bid for a permanent

injunction against the Company and made a final judgment restating the total damages amount

determined by a jury verdict on November 21, 2013. The Company appealed the decision on the

damages amount on March 7, 2014, and the appeal is currently in progress. The final conclusion and the

effect of the patent lawsuits with Apple are uncertain as of the reporting date.


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(3) In addition, during the normal course of business with numerous companies, the Company has been

involved in various claims, disputes, and investigations conducted by regulatory bodies. Although the

outflow of resources and timing of these matters are uncertain, the Company believes the outcome will

not have a material impact on the financial condition of the Company.

14. Share Capital

The Companys total number of authorized shares is 500,000,000 shares (5,000 per share). The Company has

issued 147,299,337 shares of common stock and 22,833,427 shares of preferred stock as of March 31, 2014, excluding

retired shares. Due to the retirement of shares, the total par value of the shares issued is 850,664 million (common

stock 736,497 million and preferred stock 114,167 million), which does not agree with paid-in capital of

897,514 million.

15. Retained Earnings

(A) Retained earnings as of March 31 , 2014 and December 31, 2013, consist of:


Appropriated 119,947,786 104,175,235

Unappropriated 34,055,573 44,425,047

Total 154,003,359 148,600,282

16. Other Components of Equity

Other components of equity as of March 31, 2014 and December 31, 2013, consist of:


Treasury stock (7,313,757) (7,323,432)

Stock options 5,547 10,243

Unrealized gains on available-for-sale financial assets 2,114,110 2,189,013

Share of other comprehensive income of associates and joint ventures 715,852 741,893

Foreign currency translation (3,478,839) (3,610,654)

Remeasurement of net defined benefit liabilities (1,309,671) (1,302,588)

Other (156,755) (163,548)Total (9,423,513) (9,459,073)


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The Company repurchases registered common stock and non-voting preferred stock, and recognizes the repurchase

amount in other components of equity. Such stock will be distributed upon exercise of stock options. Treasury stock

as of March 31, 2014 and December 31, 2013, consists of the following:


(In millions of Korean won and

number of shares) Preferred Stock Common Stock Preferred Stock Common Stock

Number of shares 2,979,693 shares 16,360,561 shares 2,979,693 shares 16,384,216 shares

Acquisition cost 621,843 6,691,914 621,843 6,701,589

17. Expenses by Nature

Expenses by nature for the three-months ended March 31, 2014 and 2013 consist of the following:


Raw materials and goods 21,756,476 21,055,248

Wages and salaries 4,485,185 3,858,247

Pension 402,604 243,706

Depreciation 4,004,084 3,775,468

Amortization 252,337 231,598

Welfare 821,212 743,378

Commission and service charges 2,550,416 2,750,670

Other 10,914,213 11,430,322

Total1 45,186,527 44,088,637

1 Expenses above are equal to the sum of cost of sales and selling and administrative expenses on the consolidated statements of

income.


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18. Selling and Administrative Expenses

Selling and administrative expenses for the three months ended March 31, 2014 and 2013, are as follows:


1) Selling and administrative expenses

Wages and salaries 1,338,623 1,319,748

Pension 87,310 58,120

Commission and service charges 2,550,416 2,750,670

Depreciation 164,075 129,402

Amortization 98,681 101,194

Advertising 677,862 885,882

Sales promotion 1,587,983 1,467,429

Transportation 839,661 875,656

Warranty 861,689 710,519

Other 1,239,868 1,085,576

2) Research and development expenses

Total expenses 3,877,538 3,414,187

Capitalized expenses (186,694) (89,101)

Total 13,137,012 12,709,282

19. Other Non-Operating Income and Expense

Details of other non-operating income for the three months ended March 31, 2014 and 2013, are as follows:


Dividend income 1,307,086 24,633

Rental income 24,857 24,484

Gain on disposal of investments 74,095 9,361Gain on disposal of property, plant and equipment 43,367 27,179Other 462,191 130,509

Total 1,911,596 216,166

Details of other non-operating expense for the three months ended March 31, 2014 and 2013, are as follows:


Loss on disposal of property, plant and equipment 53,309 77,423

Donations 50,251 30,154

Loss on disposal of assets classified as held for sale 723,869 -

Other 122,542 207,738

Total 949,971 315,315


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20. Finance Income and Costs

(A) Details of finance income and costs for the three months ended March 31, 2014 and 2013, are as follows:


Finance income

Interest income: 417,663 282,998

Interest income from loans and receivables 408,716 281,618

Interest income from available-for-sale financial assets 8,947 1,380

Foreign exchange differences 876,521 1,515,145

Gain on valuation of derivatives 49,911 37,329

Gain on derivatives transactions 106,196 92,149

Total 1,450,291 1,927,621


Finance costs

Interest expense: 142,555 123,865

Interest expense from financial liabilities measured at

amortized cost 99,404 79,360

Other financial liabilities 43,151 44,505

Foreign exchange differences 981,220 1,412,018

Loss on valuation of derivatives 66,289 67,669

Loss on derivatives transactions 91,817 136,877

Total 1,281,881 1,740,429

(B) The Company recognizes foreign exchange gains and losses arising from foreign currency transactions and

translation as finance income and costs.

21. Income Tax Expense

Income tax expense is recognized based on managements best estimate of the average annual income tax rate

expected for the full financial year. The average annual tax rate expected as of March 31, 2014 to be effective for the

year ended December 31, 2014 is 21.5% (March 31, 2013: 20.9%).

22. Earnings per Share

(A) Basic earnings per share

Basic earnings per share for the three months ended March 31, 2014 and 2013, are calculated as follows:

2014 Con Quarter01 All

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